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Tesla (TSLA) - The Ride That Never Ends

by Greg Schnell

Tesla (TSLA) has been a range bound stock for years with a ton of media interest. For buy and hold investors, the last three years has been difficult. It's the rollercoaster ride that never ends. I wrote about Tesla when it was at its lows in December. Is Tesla About To Hit The Ditch December 4th, 2016? You can see where the trend lines were drawn. In the article, I discussed how important it would be that the lows hold. A break above 30 on the SCTR would be bullish. We can see the lows held, TSLA broke out above the trend and went on an $80 run.  Read More 

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ConocoPhillips Breaks Downtrend; SCTR Soars

by Tom Bowley

ConocoPhillips (COP) saw its SCTR soar nearly 47 points after an 8.81% increase in its stock price broke its four month downtrend.  COP's strength began earlier this week on a reversing candle at gap support and culminated with today's breakout.  Here's the chart: Prior to this most recent uptrend, COP was oversold with its RSI near 30.  That's an unusually low level considering that COP is in a longer-term uptrend.  The SCTR closed at 77 on Thursday, but I'd expect to quickly see the December SCTR high just below 90 tested sooner rather than later. Read More 

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Precious metals shining on Relative Rotation Graph

by Julius de Kempenaer

Most of the time Relative Rotation Graphs are used to visualize stock-related universes but please "Don't Ignore the fact" that RRGs can be used to visualize the rotation of any universe that holds comparable securities. In the chart above I have plotted the rotations for all the sub-groups that make up the Bloomberg Commodity index against the Bloomberg Commodity Index TR ($BCOMTR) as the benchmark in the center. From this chart, we can get a few helpful takeaways that will provide us with the big picture of what's going on in the commodity landscape Read More 

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The Regional Bank ETF (KRE) Tests The Trend - Strong Volume Gainer Tip

by Greg Schnell

The Regional Bank ETF (KRE) is bouncing off the trend line today after testing below the trend line yesterday. This is a strategically important place on the charts for the regional banks. The breakdown in Relative Strength to new 4 month lows suggests this trade is losing support as investors look to other areas of the market for outperformance. However, the market has spent a week trying to base here as you can see in the zoom box after falling.  The KRE looks like a strong swing trade here with a stop just under the trend line.   Read More 

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Small-caps Turn Negative Year-to-Date

by Arthur Hill

Small-caps are still leading the market since early November, but they are lagging in 2017 as year-to-date performance turned negative. The PerfChart below shows year-to-date performance for seven major stock indexes. The Nasdaq 100 is up around 10% and leading the pack by a wide margin. The Dow Industrials, S&P 500, S&P 500 Equal-Weight Index and S&P MidCap 400 are positive year-to-date, but up significantly less than the Nasdaq 100. The Achilles heel of the market is clear when we look at the S&P Small-Cap 600 and Russell 2000, which are now negative year-to-date. We are Read More 

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There's Not Much To Like About This NASDAQ 100 Stock

by Tom Bowley

Stocks that combine poor fundamentals, technicals and seasonal weakness are probably stocks to avoid.  QUALCOMM Inc. (QCOM) is one such stock as it was hit in January with multiple lawsuits and Apple's (AAPL) suit against QCOM really damaged the QCOM chart technically.  Here's a look at the breakdown that occurred following the AAPL suit announcement: Big volume declines like this one are typically signs of significant distribution.  Making matters worse for QCOM is the fact that we're less than a week away from beginning the worst three month historical stretch of the Read More 

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China Unicom (CHU) Dials In To 52 Week Highs - Custom Size Tip

by Greg Schnell

China Unicom (CHU) is a huge telecommunications company as it ranks 4th in the world for subscribers. This week it extended a breakout and pushed up to fresh new highs. The SCTR is at it's highest level in 2 years and is above 75, which I think is a big positive. The weekly MACD made a positive cross above the zero level which usually suggests a lot of momentum to go higher. The base built below the red line is exceptionally good with higher lows since last summer. This looks like a great entry with a stop under this weeks low. It also may help diversify your portfolio. Read More 

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Small Caps Hang Onto Key Price Support

by Tom Bowley

The Russell 2000 has been under selling pressure but is now testing key support on both its daily and weekly charts.  There is a slight negative divergence that's present on its weekly chart, so that would be a signal of possible weakness ahead.  The good news is that none of the other major indices have similar momentum issues on their longer-term weekly charts.  Still, let's focus on the small caps and take a look at the support that's holding on the daily chart: Thursday's rally occurred just in time here on the daily chart as support beneath 1350 held nicely Read More 

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Darden Defies with a Triangle Breakout

by Arthur Hill

Stocks got hammered on Tuesday with the S&P 500 falling the most this year (1.24%) and breaking below its March low. Even with the seemingly big decline, the index is still just 2.25% from an all time high. Darden Restaurants caught my attention because it did not break below its early March low. Instead, the stock surged the last eight days and broke a triangle trend line. Overall, DRI is in a long-term uptrend because the stock surged to new highs in November-December. After a 30% advance in just eight weeks, the stock was extended and ripe for a correction. A triangle unfolded as Read More 

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BAC Tests Support

by Greg Schnell

Bank Of America has been a top performing stock for the last 9 months. It has continually worked its way higher. Tuesday's price action marked a significant reversal as the stock is now testing horizontal support for the last three months. The SCTR is a great buying signal, but it tends to be very late on selling stocks in a strong uptrend. I prefer the Relative Strength shown in purple as a much better indicator for selling something in a strong uptrend if you are a swing trader. Today, the Relative Strength sits on a 4-month support line. This needs to hold.  Read More 

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Ford Breaks Bollinger Band after a Long Squeeze

by Arthur Hill

Ford (F) looked as if it was simply consolidating after a sharp surge and breakout, but this consolidation strung out and the stock broke to the downside on Monday. The chart shows Ford breaking above the September high with a surge in November-December. The stock fell back after this breakout and again surged with a big two-day advance. It looked like Ford was poised for further gains in early January, but the stock fell right back and then embarked on a long consolidation.  The pink area shows the Bollinger Bands contracting as the consolidation Read More 

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The Emerging Markets $EEM Go Green On St. Patrick's Day - Creating A Chart Color Scheme Tip

by Greg Schnell

I know it was Fed day Wednesday, and Quadruple Witching Options Expiration Day today. I know it's St. Patrick's Day and they'll be partying around the world with green beers and Shamrocks. So in the world of StockCharts, we need to get on the St. Paddy's day bandwagon as the EEM chart is sending a green message today too. Look at the green volume candles for EEM on Wednesday and Thursday. This volume is soaring with 250 million shares trading in a two day period! The really interesting part is that the same sort of volume hit the ETF on the Trump Jump back in November, but Read More 

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Fresh All-Time High For ORCL After Latest Earnings

by Tom Bowley

Oracle Corp (ORCL) needed a solid earnings report last night after the closing bell to reach all-time highs and it delivered exactly that.  ORCL posted both top line and bottom line (.63 vs .57) results that exceeded Wall Street consensus estimates and this morning's open cleared price resistance to soar into "blue sky" territory.  Prior highs were reached at the end of 2014.  Check out today's gains: ORCL's momentum clearly began 4-5 weeks ago as we saw the MACD make a bullish centerline crossover.  That was accompanied by a break of its two year downtrend.  Last Read More 

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A High and Tight Pennant Takes Shape for Paychex

by Arthur Hill

Flags and pennants are continuation patterns, which means their bias depends on the direction of the prior move. A flag or pennant after a surge is a bullish continuation pattern that represents a rest within the uptrend. An upside break signals an end to this consolidation and a resumption of the bigger uptrend. These are short-term patterns for more aggressive traders. The chart below shows Paychex with a classic high-and-tight pennant. Notice that the stock hit 52-week highs in December and March, and the 50-day EMA is above the 200-day EMA. The surge from ~57.5 to ~63 (~9%) created a Read More 

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Gaming ETF (BJK) Looks To Win - Industry Group Quick Link Tip

by Greg Schnell

Gaming ETF (BJK) has been consolidating for a while. Today, while the market was under pressure, BJK pushed higher and looks set to hit new highs. It has had one close slightly higher than todays levels back in December 2016. While it has been underperforming over the last four months, todays rally in the face of broader weakness was very bullish. When the market is pulling back, it is always a good thing to go to the industry listing to see what is working.  For today's educational segment, I thought I would make sure our members know Read More 

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AT&T Forms a Classic Bullish Continuation Pattern

by Arthur Hill

The cup-with-handle is a bullish continuation pattern that forms as part of a bigger uptrend. There are three parts to this pattern. First, a cup forms as prices correct and rebound to form a "V" or "U" shape. Second, prices hit resistance at the prior high and rim resistance begins to form. Third, prices consolidate just below rim resistance and a handle takes shape. A break above rim resistance confirms the pattern and signals a continuation of the bigger uptrend. Classic measuring techniques suggest that the subsequent advance should equal the height of the pattern. This implies a 20% Read More 

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Heavy Construction Tests Support, Here's A Potential Winner

by Tom Bowley

The Dow Jones U.S. Heavy Construction Index ($DJUSHV) is currently testing its rising 20 week EMA and is near key support in its four month sideways consolidation range from 440-480.  Friday's close was 447 and the weekly RSI is now at 43, typically a solid level on the RSI where we see price reversals occur.  If the DJUSHV does, in fact, begin to recover and head back towards 480, one stock poised to recover could be Granite Construction (GVA), which is currently testing major support.  Take a look: While there's no guarantee of a rebound in the DJUSHV or in GVA shares Read More 

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Lowes (LOW) Opens The Window To Fresh Highs - Checking Industry Group Strength Tip

by Greg Schnell

Last week, Lowes (LOW) gapped up and touched a fresh high above the 2016 highs. This week it has consolidated in a range but is holding up nicely as the markets wobbled. The 50 Million shares of volume for the week was the highest positive week candle in 3 years. On the price, notice the two year sideways consolidation between $60-$80. Nice to see the company doing well. It has acquired a Canadian Home Improvement Retailer (Rona) so hopefully that transition will continue to help the stock. Lowes completed the acquisition in May 2016.  Home Read More 

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Microsoft Stalls within Uptrend as Stochastic Oscillator Starts to Turn

by Arthur Hill

It always piques my interest when a stock bucks the broader market. Note that SPY and QQQ closed lower the last two days and Microsoft (MSFT) closed higher. Even though it is only for two days, this little morsel of relative strength could foreshadow a bullish resolution to the current consolidation. First and foremost, note that Microsoft is clearly in a long-term uptrend. The price chart sports a serious of higher highs and higher lows with a 52-week high in late January. MSFT stalled over the last five weeks with a triangle consolidation taking shape. A breakout looked imminent when the Read More 

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Careful With The Transports Here (IYT) - Data Adjustment Tip

by Greg Schnell

The Transports (IYT) made a subtle break in the Post - Election uptrend today. A couple of things show up here.  The SPX Relative Strength is at 4-month lows today.  The price has not made much progress since the December 8th high in the energy stocks. The 171 level looks like pretty good resistance as this chart is unable to stay above it. The trendline break today with a close on the lows does not look good here. With some softness starting to show up in Commodities, this chart also looks vulnerable. Caution is warranted. Read More 

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Intel Struggles as Bearish Patterns Take Shape

by Arthur Hill

Intel is not keeping pace with the broader market and chartists should watch the bearish wedge for signs of further weakness. There are two patterns at work on the price chart. First, INTC formed a rising wedge after a sharp decline and this looks like a short-term bearish continuation pattern. A break below last week's low would signal a continuation lower and target a move to support in the 33 area. Should this occur, chartists can then consider the possibility of a double top over the last eight months. A break below the October-November lows would confirm the double top and fully Read More 

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JNJ Jumps To An All Time High

by Greg Schnell

JNJ pushed above and closed at a new all time high so far this week. WIth the market under some selling pressure on Thursday, JNJ still closed above previous All Time Highs. If the market was to start taking on a defensive posture, this stock in the Healthcare area could work well in that environment. Healthcare is one of the defensive sectors. The volume has been strong the last two weeks and will probably push to a stronger volume than the last 4 weeks with Friday's action. Lately Healthcare, Utilities and Consumer Staples have been some of the top performing Read More 

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This Part Of Europe Just Made A Major Long-Term Breakout

by Tom Bowley

The London Financial Times Index ($FTSE) had sideways consolidated for 17 years after topping back in 2000.  That consolidation period has ended in a big way in 2017 and this index appears poised for a very significant rise.  Despite how you might feel about Brexit, the market has casted its vote rather bullishly and I'm looking for the breakout to result in a lengthy uptrend - perhaps for several years.  Here's the chart: So long as monthly closes continue to hold the rising 20 month EMA, currently at 6785, I'd view the long side as the only side to be on with respect to Read More 

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EuroTop 100 Index Ends Consolidations and Resumes Uptrend $EUR

by Arthur Hill

The EuroTop 100 ($EUR) has further room to run after breaking out of a bullish continuation pattern. The price chart shows the index basing from March until November and then breaking above a major resistance zone in early December. After a 13.1% advance in nine weeks, the index paused with a five week consolidation (blue box). The breakout over the last few weeks signals an end to the consolidation and a resumption of the bigger uptrend. A similar 13% advance from the consolidation lows would extend to the 3150 area.  The December breakout coincided Read More